U.S. stocks edged down on Friday after five straight days of gains as the rally started to show signs of fatigue along with a drop in crude oil prices.
A modest pullback was expected despite strong data on consumer spending and a rosy outlook from shipping company FedEx
October crude oil futures slipped more than $3.00 to $68.83 as of 1:58 p.m. due to a rise in refined fuel inventory.
Both equities and oil are exhausted. Money has been coming out of dollar into equities and holding up energy all this week, said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
But he added that as long as the U.S. dollar remains weak, stocks will not see a hefty correction as cash continues to move out of the dollar and into risk-associated assets. The U.S. dollar fell to a one-year low against major currencies on Friday.
The Dow Jones industrial average <.DJI> was down 39.45 points, or 0.41 percent, at 9,588.03. The Standard & Poor's 500 Index <.SPX> shed 3.17 points, or 0.30 percent, at 1,040.97. The Nasdaq Composite Index <.IXIC> lost 7.91 points, or 0.38 percent, at 2,076.11.
After the longest string of consecutive daily gains since November, the broader S&P 500 index is now up 54 percent from its closing low on March.
Among the gainers, FedEx rose 5.3 percent to $76.49 after raising its first-quarter profit view.
The outlook also lifted rival UPS
Another piece of optimistic news came from the Reuters/University of Michigan Surveys of Consumers, which showed that consumer sentiment rose more than expected in early September, moving to its strongest level in three months.
But market reaction was muted.
Shares of Morgan Stanley
(Editing by Kenneth Barry)